Help Please!

[SCF]

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@Anonymous wrote:

The problem here is that I'm not eligible for any kind of repayment plans based on my income, this is a private student loan - not a federal one. There are literally no programs out there for me that I can seem to find, and I have been researching this for years. Knowledge is power - I agree - but I'm reaching out because I can't seem to find any help for my situation. The only way to not pay $120,000 total on a $20,000 loan seems to be paying more than the minimum payment a month, but I can't afford to do that when I make $27,000 a year and have a $330 student loan payment a month. That's literally 1/4 of what I clear a month.

Do you know of any private loan options that I'd be eligible for?

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If Chase isn't willing to offer you any modifications to your loan, your options are basically to lower your interest rate through refinance or pay more than the minimum.  I would definitely investigate refinance, if you have decent credit and income you should be able to secure a much lower, fixed rate (say in the 3-5% range).  You also need to take a hard look at your expenses and income. Even an extra $50/month would make a big difference in your total interest paid, so it's probably time to seriously consider how you can reduce expenses and increase your income.

[Kenny]

You've gotten some great advice from the other users. The best outcome will come when you have person to person conversations with a loan officer or telephone conversations with these companies that might refinance for you. Do you have any property (IE: automobiles that are paid for, house that is paid for?) These types of secured loans would be a great solution, but might not be available to you?

Wish you luck! Please let us know what you've found out regarding the refinancing companies for private student loans. (Private student loans are so not fair for consumers. They should NOT have the same protections as federal student loans, IMO. If they don't have the same interest rate requirements/stipulations, I don't think they should be provided the same legal protections.. but I'm sure everyone hates private student loans!)

[Anonymous]

Unfortunately, I'm only 26, and I make $27,000/year - so I don't have any property that I own out right. I've tried refinancing, but because I don't make enough companies like SOFI won't touch me, and my bank (Navy Federal Credit Union) won't give me a $34,000 personal loan because I don't have the assets to cover it. Again - I'm at a loss - I've already tried everything that's been suggested and I've hit a brick wall.

[Anonymous]

I do have decent credit for my age (26) - I have a 711 FICO, but I don't have decent income ($27,000/yr). So loan companies and refinancing companies won't touch me. I've truly tried. And trust me, I have looked hard at my expenses and income - there IS no wiggle room! Like I said, my private student loan for ONE year of college is costing me 1/4 of my salary a month, and I still have food, gas, a mortgage, and utilities to pay for.

[Anonymous]

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@Pat94108 wrote:

Do you think you could refinance? Say with a company like Sofi? Also, just curious how come you only have private loans? Didn't you quality for federal loans? 

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I was 18, and I had no help preparing for college. I was a good student with a 3.65 cumulative GPA, and I would have demonstrated financial need - however I didn't know to fill out FAFSA, or the difference between private and federal loans. I received a flier in the mail from Chase offering the solution and I took it - I had no idea what I was getting into. Even after reading through the contract, I didn't understand at 18 what fluctuating interest rates were, that I'd accrue interest during the 4 year deferment period, or that my rates were extremely high. What's 9% in the long run? Obviously I learned very quickly what a mistake this was, but by then it was too late.

[Anonymous]

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@Anonymous wrote:

What is your interest rate?   I have $30k in federal loans at 3.25% and my payments are not even close to that.   If I went to a 10 year repayment period my payments would be less than yours.

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The difference here is that mine isn't a federal student loan, it's a private student loan. It's on a fluctuating interest rate, but last months statement said I was looking at 9.16%.

[SCF]

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@Anonymous wrote:

I do have decent credit for my age (26) - I have a 711 FICO, but I don't have decent income ($27,000/yr). So loan companies and refinancing companies won't touch me. I've truly tried. And trust me, I have looked hard at my expenses and income - there IS no wiggle room! Like I said, my private student loan for ONE year of college is costing me 1/4 of my salary a month, and I still have food, gas, a mortgage, and utilities to pay for.

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Unfortunately, these situations often have "simple" answers that are anything but simple, or easy, to actually implement.  The only way to pay less interest is to refinance into a lower rate, or to pay more than the minimum payment.  Those statements are based purely on the math, and unfortunately, there is no changing them.  If you cannot refinance or pay more because you do not have enough income, then you have found the root of your problem - your income.  Changing your income is much easier said than done, but that is what needs to happen here in order for you to be able to do what you want (pay down your loans faster and pay less interest).

These forums are much more about credit-specific issues, but there are plenty of great communities out there (and the Personal Finance board here can help get you started) that can help you find ideas and support for how to improve your income and maybe even help you find some "wiggle room" in your budget that you hadn't even considered before.

[Anonymous]

I agree with SCF.  Are you working in your field of study?  Is your income likely to increase significantly over the next few years?  If the answer to either of those is no you should be looking for new employment.

[Anonymous]

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@Anonymous wrote:

I agree with SCF.  Are you working in your field of study?  Is your income likely to increase significantly over the next few years?  If the answer to either of those is no you should be looking for new employment.

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Yes; I'm working in my field of study (psychology) - however, without a masters degree, I'm not eliglbe for any state certifications or licensures. I want to go to grad school and got accepted, but I don't have the money. It's a catch 22 - I have to spend more money, possibly take out more loans, just to make more money a year in my salary (Applied for hundreds of scholarships, but haven't heard anything back). Trust me, I look for jobs everyday, but there's nothing available to me making any more than I currently do without a masters.

[Anonymous]

Hi...

Ive been reading your situation through the threads and cant help but wonder if you are being mislead. Not by the answers here but by Chase Bank themselves. See, when you went to school and accepted your privte loan you immedietly fell under the Higher Education act of 1997. This act was formed by big privite banks to help them cast big fees on student loans and force payback w the same protection afforded Federal Loans. But fast Forward to today, where our beloved current president has plegued us with his medical reform bill and you may find some solice. See, with this bill piggybacked the Student Loan Overhaul of 2010 - you should read the details pertaining to student loans. in short, this bill modified two big problems of the 1997 Act. High fees, and Pay Back Requirements. It reduces the mandatory repayment schedule of 15% of income to 10% of income. You make $27000 annual so your payments are roughly $337.00 and from what I gathered your still paying that. But the reduced rate of 10% would decrease your payments to roughly $225.00. What this means to you is your still bound by law to repay this debt. (Lesson learned, paying the interest while attending school should be your future advice to family and friends) but under Obamas Student Loan Overhaul you should only be repaying the $225.00 (10% of income) w/out any added fees. I would encourage you to follow up on this and then approach your bank. Privite lending tactics of education loans is the reason the overhaul came to be...  Please let me know if this helped.